1) What is the total cost of the project? How much of the total cost are labor costs?
Labor cost = $ 844,980 (this amount was taken from the Microsoft project document)
It is projected that A&D would need twelve Windows 2000 workstations (at $3,000 each) and five Windows 2000 servers (at $12,500 each).
Software costs = 12*$3,000 + 5*$12,500 = $98,500
Overall Project Cost = Labor cost + Software cost = $ 844,980 + $98,500 = $943,480
Labor cost represents 89.5% of the total cost.
2) What is the projected availability date of the software system? In other words, when is the earliest you can put it to use in the company?
According to the Microsoft project document, it is estimated that the software will be ready to be used in the company on 18 November 2003. This date might change if there is
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6) Recommendations
• A&D should apply a risk management plan during the whole project life cycle. In this case, they should incorporate preventive actions and contingency plans in case there is a delay or problem in any of the critical activities. They can do this effectively by including another person whose main responsibility will be monitoring trigger metrics and informing the project manager directly in case they need to conduct a contingency plan.
• Another action A&D could perform is taking the option of buying the commercial application instead of creating a custom-developed program from the scratch. Doing so it will be able to have the online store ready before the due date; the only problem with this is that the software would not have all the specifications or requirements that A&D wants, but, they can still put custom modifications to make it more similar to the desired software and still they would finish
The parent company cost to build a store would be $80,000 ($10,000 profit). The cost timeframe would be an $80,000 expense in the month that the store opened.
Overhead based on direct labor includes the cost of the Product Development Support Center, interest expenses, and general and administrative expenses. The Product Development Support Center failed to account for hours spent on each product, which will not only complicate the product cost calculations, but also the calculation of capitalization expenses later on. The Development Support Center will be most used during the peak (i.e. most hours) time of development for each product, and hours worked will probably be the best way to divvy up the costs of the support center. The money invested in the company is being used on developing each product right now. I figured interest would best be divvied up by hours to attribute the interest expense to the product using the most of the investment. Similar to the reasons stated before general and administrative costs are going to be associated with the most prominent product, and that is best seen through hours. (Figure A)
This analysis shows that the projects NPV as 13.37 million dollar. Our result is slightly different than the presenting team because of rounding. But both of our teams had positive NPV which suggest that the project should be accepted.
Given the next open slot of senior management staff who will give opening and closing remarks, the next feasible schedule appears to be seven weeks after the mid-June Microsoft Developers Conference or in early OCT 2013.
Spokane Industries has contracted Franklin Electronics for an 18 month product development contract. Franklin Electronics is new to using project management methodologies and has not been exposed to earned value management methodologies. Even though Franklin and Spokane have worked together in the past, they have mainly used fixed-price contracts with little to no stipulations. For this project, Spokane Industries is requiring Franklin Electronics to use formalized project management methodologies, earned value cost schedules, and schedules for reports and meetings. Since Franklin Electronics had no experience with earned value management, the cost accounting group was trained in the methodology in order to bid for the project.
interest. Looking at a $9,500 dollar contract at 22.50% interest while paying $69.06 a week for 208 weeks, will cost a total amount of $14,364.48. That is almost
As discussed, this project and its requirements highlight areas where future work/improvements can be made to increase the project and the outcome. The timeframe put on this project is something which can be changed to deliver a full implementation rather than “vanilla functionality” which would later need to be modified. Another factor to consider delivering a full implementation would be the capital investment which is used for this project as this needs to be topped
In helping avert the threat in the area of development of web services (such as .NET), Microsoft has offered to support partners and developers of programs to the tune of $2 billion. This may provide some incentive to programmers; however, the results remain to be seen. In the search business for Microsoft MSN to compete with Google and Yahoo, Microsoft spent approximately $200 million in advertising. In addition to pure Internet searching, Microsoft is developing the search functionality to take place across the Windows platform.
The reason that I have chosen to do this question is that I want to discover whether there is a viable solution for a company as large as Microsoft to increase their profit margins or if Microsoft 's size prevents them from further increasing their profits. It is important to find out as if there is a clear way to increase profits it may be possible for other similar firms to also increase their profits. Since Microsoft 's establishment in April 1975 they have grown into a monopoly within the technology market, bringing huge innovation to the technology market. Successes such as the ‘Windows’ Operating system along with further inventions such as the ‘Xbox’ have allowed Microsoft to become diverse within their product portfolio
It’s generally your job to determine when you have to start to meet the deadlines. The PS8 scheduling software can give u when to start when u develop the plan. They have to just define the project with tasks, durations and dependencies and then the software will schedule your task backwards in time from the set end date and it will come up with the latest date at which you can start your product to meet the deadline. It’s basically the method of scheduling the production backwards from the end date to the start date and by computing the time and materials required at each stage of the
of 3 programmers over a period of 18 months with a budget of a million
Microsoft is the leading and the largest Software Company in the world. Found by William Gates and Paul Allen in 1975 Microsoft has grown and become a multibillion company in only ten years. It all started with a great vision – “a computer on every desk and every home” - that seemed almost impossible at the time. Now Microsoft has over 44,000 employees in 60 countries, net income of $3.45 billion and revenue of 11.36 billion. Company dramatic growth and success was driven by development and marketing of operational systems and personal productivity applications software.
Microsoft has always been known as a software company, and not well known for its hardware. In fact, the only hardware that Microsoft sells to the retail market is branded peripherals. In its heyday, Microsoft was a market leader, bring an operating system to the masses, and leading in internet search. In recent years, however, most of the moves that Microsoft has made have not been in a market leader position, but have been in response to competitors threatening Microsoft’s positions.
To test the financial feasibility and plan acceptability, there must be information on the magnitude, and share of estimated project cost that are reimbursable. This information can be derived from cost allocation. Also where cost sharing is required in the multipurpose planning process cost allocation can be applied. Cost allocation also provides information necessary for allocating the real expenditures ensuring that the cost account are maintained in line with plan formulation and allocation principles during the subsequent c...
starting work part costs $2.50 per unit. Operating cost of the indexing machine is $96/hr,